Derivatives are now a global phenomenon. Nowadays, many types of derivative products are traded and settled directly between one party and its counterparty on an Over-the-Counter (OTC) basis.

For each product, its purpose and possible outcomes must be well understood by operations and other personnel within financial institutions, so as to provide top quality servicing of clients and to avoid processing losses.

Since the Global Financial Crisis in 2008, regulators around the globe have focused very closely on regulation and risk mitigation relating to OTC derivatives.

For all of the above, it is therefore essential that those responsible for processing OTC derivative trades possess a clear understanding of how trades and collateral are processed under the new regulations, the potential exposures and, critically, what mitigating measures are necessary.

Identify the processing lifecycle of a range of OTC derivative products

Understand the purpose of collateral in the management of OTC derivative trades

Appreciate each step in daily counterparty risk mitigation within the collateral process

Understand the reasons for the introduction of the EMIR controls

Appreciate how central counterparties interact with clearing members on a day-by-day basis

Understand how clearing members interact with non-members in a central clearing environment

Appreciate what causes trades to be either centrally cleared or non-centrally cleared.

Who should attend?

The course is aimed at those currently working within a particular segment of derivative operations (e.g. trade processing, collateral management), who would appreciate the ‘big-picture’ and how their role relates to this.

Due to its broad content, the course is very beneficial to those working in other areas of the markets, from Trading and Sales to Operations, Risk Management, Compliance, Legal and IT.

The course is equally applicable to professionals within institutional investment firms and banks, and to those working within central banks, central counterparties, derivative exchanges, central securities depositories, custodians and management consultants.